Consumers trying to buy a house or finance a car loan could be the big winners as a result of the Federal Reserve's decision to slash its target interest rate to nearly zero and take other steps to battle the financial crisis and worsening recession.

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But analysts caution that any upturn in the economy is still months away.

The Fed on Tuesday announced that it was reducing its target for the federal funds rate to between zero and 0.25 percent, down from 1 percent, a level that was already the lowest target rate in a half century.

The Fed also pledged to use "all available tools" to heal the U.S. economy.

Meanwhile, Treasury Secretary Henry Paulson said he doesn't expect any more major financial institutions to fail during the current credit crisis.

Paulson also said he has no current plans to ask Congress to make the second half of the $700 billion financial rescue fund available before the George W. Bush administration leaves office on Jan. 20.

But he added that the administration is prepared to move quickly, if necessary, to tap the extra resources.

In an interview on CNBC, Paulson said he believes the actions taken by financial authorities in the U.S. and other countries will allow all the systemically important institutions to remain viable.

Paulson said a top priority for his remaining weeks in office is making sure the transition to the incoming administration of President-elect Barack Obama goes smoothly.

Stocks Finish Lower As Investors Assess Rate Cut

Wall Street finished lower, as further signs of economic deterioration offset earlier enthusiasm about the Federal Reserve's record interest rate cut.

Stocks fell in the early going after Morgan Stanley reported a larger-than-expected quarterly loss -- a fresh reminder of the obstacles the battered financial industry still faces.

After briefly moving into positive territory, stocks fluctuated in late afternoon trading as investors grappled with concerns about the economy, including more layoffs, the threat of deflation and the magnitude of the Fed's actions.

The Dow Jones industrial average had gained more than 4 percent Tuesday after the central bank lowered its federal funds rate target to a range of zero to 0.25 percent.

The Dow closed down about 100 points to the 8,823 level.